• GBP/USD trades softer around 1.2630 in Wednesday’s early Asian session. 
  • The US Durable Goods Orders rose 1.4% in February against a 6.9% fall in January, better than expected. 
  • BoE’s Mann dampened expectations for large interest rate cuts this year.

The GBP/USD pair edges lower to 1.2620 during the early Asian trading hours on Wednesday. The major pair remains capped under the key 100-day Exponential Moving Average (EMA). Many Federal Reserve (Fed) policymakers stick to their path of interest-rate cuts amid the bumpy road to inflation and expect to cut rates three times in 2024, which might weigh on the Greenback. On Thursday, the US and UK Gross Domestic Product (GDP) data will be released. 

Despite recent monthly inflation increases, Fed Chair Jerome Powell said last week that pricing pressures would continue to ease and that it may be appropriate to cut interest rates later this year. The majority of US central bank officials expect to cut rates three times in 2024. These remarks push the Fed's stance more dovish and drag the US Dollar (USD) lower in recent sessions. 

About the data, the US Conference Board’s Consumer Confidence fell to 104.7 from a downwardly revised 104.8 in February. Meanwhile, the Durable Goods Orders for February came in better than market expectations, rising 1.4% in February from a 6.9% fall in January. The US Dollar Index (DXY) consolidates around 104.30 following the release of US economic data as traders await fresh clues from the US February Personal Consumption Expenditures Price Index (PCE) data on Friday.

On the other hand, the Bank of England's (BoE) Catherine Mann, one of the BOE's most hawkish policymakers, warned that financial markets are expecting too many interest rate cuts this year and that the BoE is unlikely to move before the US Fed. "I think they're pricing in too many cuts," Mann said. Traders will take more cues from UK GDP growth numbers on Thursday, which are estimated to contract 0.3% QoQ and 0.2% YoY in the fourth quarter. In the case of stronger-than-expected GDP growth number data, the Pound Sterling (GBP) could gain traction and act as a tailwind for the GBP/USD pair.

GBP/USD

Overview
Today last price 1.2624
Today Daily Change -0.0004
Today Daily Change % -0.03
Today daily open 1.2628
 
Trends
Daily SMA20 1.272
Daily SMA50 1.268
Daily SMA100 1.2645
Daily SMA200 1.2591
 
Levels
Previous Daily High 1.2668
Previous Daily Low 1.2622
Previous Weekly High 1.2804
Previous Weekly Low 1.2575
Previous Monthly High 1.2773
Previous Monthly Low 1.2518
Daily Fibonacci 38.2% 1.264
Daily Fibonacci 61.8% 1.2651
Daily Pivot Point S1 1.2611
Daily Pivot Point S2 1.2594
Daily Pivot Point S3 1.2565
Daily Pivot Point R1 1.2657
Daily Pivot Point R2 1.2686
Daily Pivot Point R3 1.2703

 

 

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